Back in November 12, 2015 on a blog post, I noted the shares of Barrick Gold Corporation (ABX) on the TSX trading at $10.00 – up 0.32 (3.40%) on good volume of 3,725,421 shares. The December gold contact was down slightly on the day.
At the time I noted a left shoulder (LS) – a head (HD) and the incomplete right shoulder (RS) along with a tilted line is the neck line which – when extended to the right marks the price (then $10.40) Barrick needed to break above on volume to complete the trend reversal. Technical analysts should not react to a reversal pattern until complete – but Barrick seemed to be building an inverse head & shoulder pattern since last July along with a big volume increase.
Today on a weekly plot of Barrick we see the big volume increase from the break above the inverse head & shoulder pattern along with a break above the 40 week (or 200 day) simple moving average. On a P&F chart I see some overhead at $21 - $22 so why not take some profits there and pick up a few sector laggards? THO for now.